David Hayes .ca HOME - Amazon Simple Storage Service · BIG TREEService, removal, ... DAVID HAYES...
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Product:STAR Date:06-27-2009Desk: ADV-0008-CMYK/29-06-09/12:00:59
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CL8 H TORONTO STAR H SATURDAY, JUNE 27, 2009 ON V2
DAVID HAYESSPECIAL TO THE STAR
Gerd Wengler, president of ParkProperty Management Inc., is sit-ting in a meeting room inside themodernist ’60s apartment tower at100 Spadina Rd. that his companyowns. Designed by legendary Esto-nian-Canadian architect Uno Prii,it’s a distinctive sight in the northAnnex, with its flared base and hugepattern of oversized diamond mo-tifs sweeping across the north andsouth faces from the second to thesixth floors.
Now, on what was a big above-ground parking lot south of 100Spadina, Wengler has broken fromhis company’s strategy of running,but never building, rental buildingsby developing a new one fromscratch. It’s called Annex Terraces,which will see its first tenants movein next week.
Among the inaugural tenants isJim Dinning, a 26-year-old lawyersitting across the table. Dinningonce lived in the Annex and loved it.Lately he’s been renting a one-bed-room in a waterfront condo. “I’mtwo years out of law school withstudent debts so I don’t want to buysomething and be cash-poor foryears,” says Dinning, who will bepaying $1,750 a month for his 754-square-foot, one-bedroom-plusden unit at Annex Terraces.
“This building is in the area whereI want to live, and will have most ofthe important qualities of living in acondo so I don’t feel like I’m takinga step backwards.
Annex Terraces, with 91 units, of-fers high-quality features, but theyinclude laminate countertops rath-er than granite, a shared 24/7 laun-dry room rather than ensuite appli-ances and none of the more whim-sical extras offered by some condos.
“Sure, my condo has a three-hole
miniature golf course,” says Din-ning, “but I’ve never seen a singleperson use it. In condos, peopledon’t use a lot of this kind of stuffbut they’re paying for it.”
Luxury or low-rent, there’s beenlittle in the way of rental accommo-dation built since the mid-’90s,when Premier Mike Harris’s gov-ernment cancelled existing and fu-ture social housing, gutted rentcontrols and created an environ-ment that encouraged private de-velopment of condominiums whilediscouraging the rental market.
Wengler’s Park Property Manage-ment is unusual today because it’salways been committed to manag-ing rental properties. Its portfolioincludes 8,000 units in 65 buildingsin the GTA and a few southern On-tario cities, all of them middle-mar-ket, like 100 Spadina, or slightlyhigher end and priced just undercondo rentals.
“We believe in keeping buildings
for many decades and reaping thebenefits of steady rental income,”says the 48-year-old Wengler, atrim, clean-shaven man with a softGerman accent. “We never sell any-thing and we try to avoid the ex-treme ups and downs. High-endluxury stuff, whether condo orrental, is the most susceptible whenthe economy goes down. We don’twant to be there.”
A mining engineer by trade, Wen-gler had just finished an MBA 10years ago and was looking for a newchallenge when by chance he talkedto an old friend of his father’s whowas then president of Park Proper-ty Management. The man, who wasill with cancer, recommendedWengler as his replacement.
So why would a company thatdoesn’t develop properties invest ina new rental building? The answerwas 100 Spadina’s under-usedparking lot.
“The only reason we could do it
was that we already owned the landso it was free,” says Wengler. “Oth-erwise it would have been econom-ically impossible.”
Wengler was determined to avoiddisputes that would require takingthe project to the Ontario Munici-pal Board for arbitration, but thatmeant long periods of negotiationwith property owners in the com-munity. Faced with neighbourhoodconcerns, what had been originallyconceived as an eight-storey rect-angular box (simple and cost effec-tive) became a tiered complex (withFrench balconies and private pati-os), which blends nicely into theneighbourhood, yet complementsthe decorative touches of its sister,the modernist tower at 100 Spadinathat was designated a heritagebuilding by the city.
It was designed by Quadrangle Ar-chitects Ltd, whose founder, LesKlein, says, “Buildings are oftendriven by circumstances. This one
is especially interesting and com-plex.”
Wengler, who studies demograph-ic trends, says that he expects a sig-nificant number of future rentersfor Annex Terraces will be retiringbaby boomers whose homes are toobig. Many will want to stay in theirfamiliar neighborhoods and havetheir savings fluid rather than tiedup in home ownership.
One of the conditions of the siteplan agreement is that Annex Ter-races remain a rental property forat least 20 years. “We have abso-lutely no problem with that,” saysWengler. “As long as we own it, it’llremain a rental building forever.”David Hayes is an author and award-winning feature writer who has been arenter most of his life.
Rental building springs from parking lot New apartment built onbig, above-groundparking lot will see itsfirst tenants next week
JENNIFER ROBERTS FOR THE TORONTO STAR
Gerd Wengler, president of Park Property Management Inc., in front of Annex Terraces, which will remain a rental property for at least 20 years.
If you have stories or info about renting, reach David at:lifelong [email protected].
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